Following a strong end to the financial year, PayGroup is pleased to announce an upgrade to: FY21 ARR guidance from $20.5m to $21.5m; and FY21 new contracts signed from over $10m to $13m
Separately, PayGroup has entered into an agreement to acquire Integrated Workforce Solutions, a leading provider of franchise payroll and rostering solutions Acquisition expands PayGroup’s offering into a new high-margin franchise vertical, strengthens the core payroll business, provides substantial cross-sell opportunities, and is expected to make a material contribution to PayGroup’s annualised recurring revenue (ARR)
PayGroup will pay an initial consideration comprising of $8.4m cash and $4.35m in PayGroup shares.
A Performance Earn-out of up to $2.55m, payable in PayGroup shares, will be paid upon achieving key operational milestones in FY22 and FY23
Binding commitments received for a two-tranche placement to raise approximately $15m at $0.56 per share, with an SPP to follow for eligible shareholders to raise approximately $1m
